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[MUMBAI] India's Paytm Payments Bank is in talks to partner with full-service banks to offer services such as loans and term deposits which it cannot do on its own due to regulatory restrictions, its chief executive told Reuters.

Payments banks are niche banks that were allowed by the Reserve Bank of India in a bid to expand access to financial services in Asia's third-largest economy where millions don't have a bank account.

The payments banks can take savings deposits and remittances but are not permitted to lend.

"Anything which we cannot offer, we will be partnering with the banks. Whether it's going to be a loan, or a credit card, or a term deposit, and other services," said Renu Satti, CEO of Paytm Payments Bank, which launched in late May.